Maintain long positions as the bulls are still holding up. The Comex Gold formed a white candle to settle the latest session USD9.50 stronger at USD1,500.30 – back slightly above the USD1,500 mark, a level the commodity has been hovering around over the past one month. The low and high were recorded at USD1,491.20 and USD1,503. We continue to believe the commodity’s multi-quarter upward move remains intact, with the price pattern developed since early September still resembling the characteristics of a consolidation phase. Maintain our positive trading bias.

As the precious metal’s upward move is still showing signs of holding up, we maintain our recommendation for traders to stay in long positions. These were initiated at USD1,513.80, or the closing level of 3 Oct. For riskmanagement purposes, a stop loss can be placed below the USD1,465.00 threshold.

Immediate support is expected at USD1,465.00, which was the low of 1 Oct. This is followed by the USD1,406.00 mark, ie near the low of 1 Aug. On the other hand, the immediate resistance is set at USD1,543.30, or the high of 24 Sep. This is followed by USD1,566.20, which was the high of 4 Sep.

Source: RHB Securities Research - 7 Nov 2019